A California investment firm claims it is owed $11.7 million in consulting fees for introducing the predecessor of Massachusetts marijuana multistate operator Curaleaf to an Oregon vape oil company.
Beverly Hills, California-based Arcadian Capital argues in a federal court lawsuit that it is owed 3% of Curaleaf’s recent $390 million acquisition of Portland-based Cura Partners, which is known for its Select vaping products.
The lawsuit was filed earlier this year and reported Thursday by the Portland Business Journal. Arcadian’s lawsuit initially was filed in Superior Court in Los Angeles County, then moved to U.S. District Court in central California.
Cura Partners denies the validity of the claim, calling the consulting contract a sham because Arcadian provided no services.
Arcadian bases its claim on a 2018 consulting agreement with Cura Partners that it says was not canceled.
According to the lawsuit, Arcadian made an introduction that led to an initial $13 million investment in Cura Partners by PalliaTech, which later changed its name to Curaleaf.
Arcadian said it received a consulting fee of $390,000 in the spring of 2018 for that introduction but should be paid consulting fees for the Curaleaf-Cura Partners merger as well.